Rising Financial Anxiety Reshapes Americans’ Major Life Decisions, Fact Check Team Finds

A growing number of young Americans are questioning whether college is still worth the cost as affordability concerns and economic uncertainty continue to rise.

New polling from higher education consulting agency EAB found that 67% of high school graduates surveyed said they are currently opting against college because of cost-of-living concerns — a sharp increase from last year. Many respondents cited fears about taking on student loan debt while already struggling with higher costs for rent, food, and other daily expenses.

“We’re seeing a fundamental shift in how young people evaluate the return on investment for higher education,” said Dr. Elena Marquez, an education policy researcher at the Urban Institute. “The traditional promise that a degree guarantees financial stability is being questioned in ways we haven’t seen before.”

The EAB survey revealed strikingly low enthusiasm toward college overall. Just 13% of respondents said they feel optimistic about attending college, while only 7% expressed excitement about the prospect — numbers that would have been unthinkable a generation ago.

These findings come as the job market for young workers has become increasingly uncertain. Hiring for entry-level positions has slowed across multiple sectors, while unemployment among young college graduates has risen in recent years. This trend is particularly pronounced in fields like media, technology, and retail, which have experienced waves of layoffs since 2022.

Many high school graduates are feeling pressure to enter the workforce immediately instead of pursuing higher education, according to career counselors who work with recent graduates. The immediate income, even from entry-level jobs, provides financial relief that many families need now rather than the promised benefits of a degree years in the future.

However, economists and education experts warn there may be significant long-term tradeoffs for students who choose to forgo higher education. According to data from the U.S. Bureau of Labor Statistics, workers with bachelor’s degrees continue to earn more on average over their lifetimes—approximately $1.2 million more—and experience lower unemployment rates than workers with only high school diplomas.

“The education premium in earnings remains substantial, even amid these economic challenges,” said Robert Jenkins, senior economist at the Federal Reserve Bank of Chicago. “What we’re witnessing is likely a short-term response to immediate financial pressures that could have long-lasting consequences for workforce development and economic mobility.”

These education decisions are taking place against a backdrop of broader financial anxiety nationwide. New Gallup polling found affordability remains Americans’ top financial concern in 2026, with a record 55% of Americans saying their financial situation is getting worse—one of the highest levels Gallup has recorded outside of major economic downturns like the 2008 financial crisis.

Gallup’s research identified inflation and the high cost of living as the primary financial worries for Americans across demographics. Oil and gas prices, housing costs, and healthcare expenses also ranked among the biggest concerns. These findings align with recent Consumer Price Index data showing that while headline inflation has moderated, certain essential categories like housing, insurance, and medical care continue to see persistent price increases.

While inflation has cooled from its 2022 peak, many American households continue to struggle with the cumulative impact of years of higher prices. Average wage growth of 3.5% annually has not fully kept pace with inflation, which has averaged 4.7% over the past three years, leaving many families in a worse financial position despite nominal income gains.

“These economic pressures are reshaping major life decisions beyond just education,” said consumer economist Teresa Williams at Morgan Stanley. “We’re seeing people delay homeownership, postpone career changes, and wait longer to have children—all decisions with significant long-term demographic and economic implications.”

College enrollment officials report they are adapting to this new reality by emphasizing direct career pathways, expanding financial aid packages, and creating more flexible learning options to address affordability concerns. Meanwhile, alternative education providers, including trade schools, coding bootcamps, and apprenticeship programs, have seen applications surge as students seek more affordable pathways to career advancement.